Potpourri launches $188 million credit facility at Libor plus 450 bps

By Sara Rosenberg

New York, April 3 - Potpourri Group Inc. launched on Thursday its $188 million credit facility with price talk of Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 991/2, according to a market source.

The facility consists of a $25 million five-year revolver and a $163 million six-year term loan.

Covenants include a fixed charge coverage ratio, a total leverage ratio and capital expenditures.

Amortization on the term loan is 2.5% per annum, the source added.

GE Capital Markets is leading the deal.

Proceeds will be used to refinance existing senior and junior debt and to fund a preferred dividend.

Pro forma net senior/total leverage will be 4 times.

Potpourri is a North Billerica, Mass.-based multi-title catalog company offering products in home decor, casual apparel, gifts and unique accessories.

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